CMA sets out energy market reforms

The Competition & Markets Authority (CMA) has laid out the most radical reforms to the energy market since privatisation.

Following its investigation into the energy market, the regulator has set out more than 30 measures to help make the market more competitive.

“These include pressing ahead with reforming outdated systems for measuring and charging energy that distort competition between suppliers, reducing the costs of transmitting electricity and using competition to help ensure that financial support for low-carbon generation is allocated at the lowest cost to customers,” the CMA said.

“Price comparison websites will also be enabled to play a more active role in helping customers find the best offers for them and given access to meter data which will enable customers to search instantly for deals.”

Help for small businesses

The watchdog added: “The measures will also tackle specific issues faced by microbusinesses (those that employ fewer than 10 people) – 45% of which are on default tariffs.

“Suppliers will now be required to publish their prices for such customers and will no longer be able to lock them into expensive ‘rollover’ contracts.”

Trade body Energy UK said: “Compared to the landscape two years ago when the market was first referred, there are now more than 40 suppliers vying for customers’ attention.”